Configure the performance fee calculation settings
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Last updated
Last updated
The performance fee can be calculated as one of the following:
The percentage of net profit on a subscribed investment account, taking into account the sum of Realized PnL and Floating PnL.
The percentage of net profit on a subscribed investment account, taking into account Realized PnL.
The percentage of net profit on a subscribed investment account, taking into account the sum of Realized PnL and negative Floating PnL.
Moreover, when calculating net profit using any of these approaches, it is possible to consider the amount of the paid trade fee as the loss incurred on a subscribed investment account.
The High-Water Mark principle is used when calculating the performance fee, meaning that the performance fee is paid only from the net profit increment on an investment account.
Configure the performance fee calculation settings:
Go to Investment Platform and expand the required platform instance.
Expand Settings, and select Fees Settings.
Go to Performance Fee.
In the Calculation Formula dropdown, select one of the following options:
Based on sum of float and realised PnL – to calculate the fee based on the sum of Realized PnL and Floating PnL, both of which are calculated against the positions copied to an investment account from a specific master account.
Based on realised PnL – to calculate the fee based on Realized PnL, which is calculated against the positions copied to an investment account from a specific master account.
Based on realised PnL with floating loss – to calculate the fee based on the sum of Realized PnL and negative Floating PnL, both of which are calculated against the positions copied to an investment account from a specific master account.
In the Trade fee accounting dropdown, select either of the two options:
Consider Trade fee as loss – to consider the amount of the paid trade fee as the loss incurred on a subscribed investment account.
Exclude Trade fee from calculation – to ignore the trade fee when calculating the performance fee.
Click Save to apply the changes.
Suppose that the performance fee is configured to be calculated based on the sum of Realized PnL and Floating PnL and the trade fee is excluded from calculations:
Performance fee = (Current Total PnL - Previous Total PnL) * Fee%/100
where:
Current Total PnL is the sum of Realized PnL and Floating PnL, which is calculated at the moment of fee payment against the positions copied from a specific master account.
Previous Total PnL is the sum of Realized PnL and Floating PnL, which is calculated at the moment of the previous successful fee payment against the positions copied from a specific master account.
Fee% is the performance fee percentage specified in a fee plan.
According to the High-Water Mark principle, the performance fee is paid only if Current Total PnL is greater than Previous Total PnL.
Suppose that the performance fee is configured to be calculated based on the sum of Realized PnL and Floating PnL and the paid trade fee is considered as a loss:
Performance fee = ((Current Total PnL - Paid trade fee) - Previous Total PnL) * Fee%/100
where:
Current Total PnL is is the sum of Realized PnL and Floating PnL, which is calculated at the moment of fee payment against the positions copied from a specific master account
Paid trade fee is the amount of the paid trade fee.
Previous Total PnL is the sum of Realized PnL and Floating PnL, which is calculated at the moment of the previous successful fee payment against the positions copied from a specific master account.
Fee% is the performance fee percentage specified in a fee plan.
According to the High-Water Mark principle, the performance fee is paid only if Current Total PnL - Paid trade fee is greater than Previous Total PnL.
